Exhibit 12.2
TRITON ENERGY LIMITED AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE
DIVIDENDS
(IN THOUSANDS, EXCEPT RATIOS)
SEVEN MONTHS
THREE MONTHS ENDED YEAR ENDED ENDED
MARCH 31, DEC. 31, DEC. 31,
------------------------------ ------------ --------------
1996 1995 1995 1994
-------------------- -------- ------------ --------------
Fixed charges, as defined (1):
Interest charges $ 11,106 $ 9,586 $ 41,305 $ 20,285
Preference dividend requirements of the Company 772 449 802 449
Preferred dividend requirements of subsidiaries
adjusted to pre-tax basis --- --- --- ---
-------------------- -------- ------------ --------------
Total fixed charges 11,878 10,035 42,107 20,734
-------------------- -------- ------------ --------------
Earnings, as defined (1) (3):
Earnings (loss) from continuing operations
before income taxes, minority interest,
extraordinary item and cumulative effect of
accounting change 12,044 2,424 16,600 (22,834)
Fixed charges, above 11,878 10,035 42,107 20,734
Less interest capitalized (5,182) (3,766) (16,211) (11,833)
Plus undistributed (earnings) loss of affiliates 46 (2,927) 2,249 4,102
Less preference dividend requirements of the
Company and its subsidiaries adjusted to pre-tax basis (772) (449) (802) (449)
-------------------- -------- ------------ --------------
$ 18,014 $ 5,317 $ 43,943 $ (10,280)
-------------------- -------- ------------ --------------
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERENCE DIVIDENDS (2) (3) 1.5 --- 1.0 ---
-------------------- -------- ------------ --------------
YEARS ENDED MAY 31,
------------------------------------------------------
1994 1993 1992 1991
--------------------- ---------- --------- --------
Fixed charges, as defined (1):
Interest charges $ 26,951 $ 16,336 $ 11,066 $28,056
Preference dividend requirements of the Company --- --- 1,386 5,546
Preferred dividend requirements of subsidiaries
adjusted to pre-tax basis 364 1,551 1,780 2,330
--------------------- ---------- --------- --------
Total fixed charges 27,315 17,887 14,232 35,932
--------------------- ---------- --------- --------
Earnings, as defined (1) (3):
Earnings (loss) from continuing operations
before income taxes, minority interest,
extraordinary item and cumulative effect of
accounting change (23,104) (147,445) (87,124) 21,054
Fixed charges, above 27,315 17,887 14,232 35,932
Less interest capitalized (16,863) (6,407) (6,529) (5,879)
Plus undistributed (earnings) loss of affiliates (645) 3,012 2,558 (2,604)
Less preference dividend requirements of the
Company and its subsidiaries adjusted to pre-tax basis (364) (1,551) (3,166) (7,876)
--------------------- ---------- --------- --------
$ (13,661) $(134,504) $(80,029) $40,627
--------------------- ---------- --------- --------
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERENCE DIVIDENDS (2) (3) --- --- --- 1.1
--------------------- ---------- --------- --------
(1) Earnings include the Company's equity in the losses of an affiliate
whose debt is guaranteed by the Company. Related interest charges for the
years ended May 31, 1992 and 1991 of $819,000 and $802,000, respectively,
were excluded from fixed charges due to the improbability that such
guarantees would be honored.
(2) Earnings were inadequate to cover fixed charges and preference
dividends for the three months ended March 31, 1995 by $4,718,000, for the
seven months ended December 31, 1994 by $31,014,000 and for the years ended
May 31, 1994, 1993 and 1992 by $40,976,000, $152,391,000 and $94,261,000,
respectively.
(3) Earnings reflect nonrecurring writedowns and loss provisions of
$350,000 for the three months ended March 31, 1996, $1,058,000 for the year
ended December 31, 1995, $984,000 for the seven months ended December 31,
1994 and $45,754,000, $99,883,000, $48,805,000 and $2,708,000, for the years
ended May 31, 1994, 1993, 1992 and 1991, respectively. Nonrecurring gains
from the sales of assets and other gains aggregated $4,150,000 and
$1,875,000 for the three months ended March 31, 1996 and 1995, respectively,
$13,617,000, $56,193,000 and $28,351,000 for the years ended December 31,
1995, May 31, 1994 and 1991, respectively. The ratio of earnings to combined
fixed charges and preference dividends if adjusted to remove nonrecurring
items would have been 0.7 and 0.5 for the years ended December 31, 1995 and
May 31, 1991, respectively. Without nonrecurring items, earnings would have
been inadequate to cover fixed charges and preference dividends for the three
months ended March 31, 1995 by $6,593,000, for the year ended December 31,
1995 by $10,723,000, for the seven months ended December 31, 1994 by
$30,030,000 and for the years ended May 31, 1994, 1993, 1992 and 1991 by
$51,415,000, $45,183,000, $33,687,000 and $17,452,000, respectively.